LS passes Manipur GST Bill, FM moves Bills for tobacco levy, pan masala cess, Pg6

Key Highlights:

• Lok Sabha passed the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 by voice vote.
• The Bill replaces an Ordinance from October 7 to implement GST 2.0 reforms in Manipur, which is under President's rule.
• The GST Council approved rationalization of GST rates on about 375 items, merging slabs into 5 and 18 percent.
• Revised GST rates were implemented from September 22.
• Finance Minister Nirmala Sitharaman moved two new Bills for higher excise levy on tobacco and a new cess on pan masala.
• The legislative changes will be carried out through The Central Excise (Amendment) Bill, 2025 and The Health Security Bill, 2025.

Detailed Insights:

• The Manipur GST Bill gives statutory backing to decisions from the 56th GST Council meeting.
• The GST Council proposed a new 40 percent rate for ultra-luxury items as part of the rate rationalization.
• The Central Excise (Amendment) Bill, 2025 and The Health Security Bill, 2025 were introduced due to the end of the compensation cess under GST.
• These bills aim to bring in higher excise levy on tobacco and related products, and a new cess on pan masala.
• The introduction of these bills indicates the government's focus on health-related revenue generation and reducing consumption of harmful products.

Key Concepts Involved:

• GST 2.0: Refers to the second phase of reforms and improvements to the Goods and Services Tax system.
• Compensation Cess: A levy imposed on certain goods and services to compensate states for revenue losses due to GST implementation.
• Excise Duty: A tax levied on the manufacture, sale, or consumption of goods within a country.